RKJ Company Has Provided the Following Information

question 131

Multiple Choice

RKJ Company has provided the following information:
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
-
The 70,000 shares of issued common stock were issued for $9 per share.
Which of the following statements is correct?

• A)Common stock is reported at $630,000 on the balance sheet.
• B)Additional paid-in capital is reported at $260,000 on the balance sheet.
• C)Common stock is reported at $350,000 on the balance sheet.
• D)Treasury stock is reported at $45,000 on the balance sheet.

---

Definitions:

Government Budget Surplus

A Government Budget Surplus occurs when a government's income exceeds its spending over a specific period.

Foreign Companies

Businesses that are registered, located, or operating in a country different from where the parent company is situated.

Dollar Value

The worth of something in terms of the amount of currency it can buy or how much currency is required to buy it.

Loanable Funds Market

A theoretical market where borrowers and lenders interact to determine the interest rate and the quantity of loanable funds exchanged.